Charles Schwab Active Trader Pulse Survey
Charles Schwab surveyed active traders in April 2020 to get a pulse on their thoughts on the U.S. equities market during the COVID-19 crisis.
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How traders describe their U.S. equity market outlook for the next three months:
Overall, traders are neutral or bearish on the economy for the rest of the quarter.
Will volatility increase in Q2/2020 compared to Q1/2020? Traders believe yes:
Even with record volatility in March 2020, traders believe volatility in Q2 2020 will outpace Q1 2020.
Traders expect the following sectors will experience the most volatility in 2020:
With increased volatility expected, traders believe four sectors in particular will be the most impacted this year.
Active Traders plan to trade more in the next 6 months:
Even with the recent uncertainty, traders indicate they are staying in the market, in contrast to previous economic downturns.
Traders are bracing for a lengthy bear cycle:
Most traders believe the bear market will continue through 2020, and of those, 75% expect it to extend into Q1 2021. However, overall, 79% of traders do believe the economy will recover within three years.
Are Active Traders planning for additional easing measures from the Fed in 2020? Most say yes:
As they plan for the rest of the year, most traders are factoring in additional easing measures from the Federal Reserve in 2020.
Logica Research surveyed 500 Active Traders using a third-party online panel. Participants were screened to ensure they live in the U.S., were between the ages of 18-75 and made 36 or more equity trades per year. The dates of interviewing were from April 14 – April 20, 2020.